The company‘s liquidity as instrument for value creation of the company

Abstract

The liquidity indicators in the financial analysis are considered to be one of the most important parameters that characterise the state of the company. Since the liquidity is an integral part of the company’s value, the question is, whether it is possible to affect the company’s value by controlling the liquidity of the assets of the company, and to which variables the attention should be paid seeking to increase company‘s value. The model of the dependence of liquidity variables, according to the DuPont analysis and working capital, which affects the the value of the company EVA, is presented as well as the practical operation of the model and the conclusions. The results achieved by research are useful to the managers and shareholders of the company, evaluating the opportunity to increase the value of the company, searching for additional arguments for company’s liquidity management.